Q4 2025 Reinsurance Group of America Inc Earnings Call Transcript
Key Points
- Reinsurance Group of America Inc (RGA) reported a record Q4 operating EPS of $7.75 per share, marking the second consecutive record quarter.
- The company achieved an adjusted operating return on equity of 15.7% for the trailing 12 months, exceeding their target range of 13% to 15%.
- RGA successfully deployed $2.5 billion of capital into in-force transactions at attractive risk-adjusted returns, reinstated share buybacks, and maintained a strong balance sheet with $2.7 billion of excess capital.
- The company's diversified global platform delivered strong results across North America, Asia, and EMEA, with notable growth in the APAC region.
- RGA's investment team delivered strong results, boosted by variable investment income from their alternative investment portfolio, and continued to reposition acquired portfolios for future benefits.
- The US group business faced challenging results, particularly in the excess medical business, which required a full repricing for 2026.
- Economic claims experience was unfavorable by $51 million in the quarter, with a corresponding unfavorable financial impact of $53 million.
- The company decided to exit the group health care lines of business after a strategic review, which will impact future earnings.
- RGA's effective tax rate for the quarter was 23.8%, slightly higher than the full year 2025 rate of 22.8%.
- The Corporate and Other segment reported an adjusted operating loss before tax of $54 million, impacted by higher financing costs and general expenses.
Welcome to the Reinsurance Group of America fourth-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Jeff Hopson, Head of Investor Relations. Please go ahead.
Thank you. Welcome to RGA's fourth-quarter 2025 conference call. I'm joined on the call this morning by Tony Cheng, RGA's President and CEO; Axel Andre, Chief Financial Officer; Leslie Barbi, Chief Investment Officer; and Jonathan Porter, Chief Risk Officer.
A quick reminder before we get started regarding forward-looking information and non-GAAP financial measures. Some of our comments or answers may contain forward-looking statements. Actual results could differ materially from expected results.
Please refer to the earnings release we issued yesterday for a list of important factors that could cause actual results to differ from expected results. Additionally, during the course of
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